The Centre has approved a new incentive scheme to accelerate the expansion of domestic piped natural gas (PNG) connections across the country. The scheme will come into effect from September 1, 2026, with the aim of making clean, safe and affordable cooking gas available to more households.
India currently has around 1.74 crore domestic PNG connections. Under the new scheme, City Gas Distribution companies will be encouraged to revive inactive or unbilled connections and expand PNG networks into new areas.
Eligible companies will receive an additional 200 SCM of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved above the prescribed target.
The scheme will be implemented in two six-month phases. The additional domestic gas allocation is expected to replace costlier LNG used by CGD companies, helping bring down their overall sourcing costs.
According to the government, the savings could reduce the investment payback period for domestic PNG connections from around 10 years to nearly three years, giving companies a stronger incentive to expand household connectivity.
PNG also offers households several advantages. There is no need to store or replace LPG cylinders, as gas is supplied continuously through underground pipelines and consumers pay according to actual metered usage.
The government is also working on National PNG Drive 2.0, streamlined approvals and a unified digital portal to make applying for and tracking new PNG connections easier.
Overall, the new scheme is aimed at taking piped cooking gas to more homes while promoting cleaner and more convenient energy use across India.
